SUBSEQUENT EVENTS |
9 Months Ended |
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Sep. 30, 2017 | |
| Subsequent Events [Abstract] | |
| SUBSEQUENT EVENTS |
SUBSEQUENT EVENTS
Self Storage Property Acquisitions
Since September 30, 2017, the Company acquired 28 self storage properties for approximately $174.5 million. Consideration for these 28 self storage properties included approximately $165.0 million of net cash and OP equity of $7.4 million (consisting of the issuance of 260,490 OP Units and 45,335 subordinated performance units, including 26,049 OP units issued to Nordhagen LLLP, an entity for which Arlen D. Nordhagen, the Company's chairman and chief executive officer, holds voting and/or investment power and 22,214 subordinated performance units to SecurCare Self Storage Inc., an affiliate of SecurCare and an affiliate of Arlen D. Nordhagen), and the assumption of approximately $2.1 million of other working capital liabilities. Such amounts incorporate the effect of $1.1 million of subordinated equity issued in exchange for cash co-invested by SecurCare and Move It. In connection with these acquisitions, the Company incurred $0.3 million of expenses, payable to certain PROs, for due diligence costs related to the self storage properties sourced by the PROs.
Since September 30, 2017, the unconsolidated real estate venture acquired one self storage property with an estimated fair value of $9.3 million. The venture financed the acquisition with capital contributions from the venture members, of which the Company contributed $2.4 million.
Preferred Share Offering
On October 11, 2017, the Company completed an underwritten public offering of 6,900,000 of its 6.000% Series A Cumulative Redeemable Preferred Shares of Beneficial Interest ("Preferred Shares"), which included 900,000 Preferred Shares sold upon the exercise in full by the underwriters of their option to purchase additional Preferred Shares, resulting in net proceeds to the Company of approximately $166.6 million, after deducting the underwriting discount and the Company's other offering expenses. Generally, the Preferred Shares become redeemable by the Company beginning in October 2022 for a cash redemption price of $25.00 per share, plus accrued but unpaid dividends. The Preferred Shares are convertible at the option of the holders upon certain changes of control. The Company used the net proceeds from the offering to repay amounts outstanding under its Revolver, and subsequently redrew under its Revolver to fund the self storage property acquisitions described above.
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